As a compensation consultant, you’ve been called in to review how SAS pays its employees and the benefits it offers them. You’ve heard some employees say that they could be attracted to other employers if they offered higher salaries. Employees overwhelmingly like the SAS benefits and the working climate, but the fact is that offers of higher pay elsewhere could be hard to say “no” to.

What insights do motivation theories offer about this situation? Should it be addressed somehow with changes to the way SAS presently operates? Or, is this a situation where time will take its course and those who leave will depart for their own good reasons, while those who stay will continue to be motivated to work hard by the current system?